What is a Trading Range and How to Identify it?
A trend starts, price is often stuck within some “shite” of sideways, zigzag, “chaotic” period. Some say that 70% but I say 85% of the time the market stays Range-Bound. During this period nothing seems to make sense. But there is usually a lot going on under the blanket of chaos.
When the trading activity slows down or there is a bitter fight between the bulls and bears the market forms a tight range. There is a lot of potent energy inside these ranges. It’s as if there were some seeds inside a pot of clay and compost. It is just dirt and dark inside the pot with a bit of moisture. But within the “dark” and “dirt” of Sideways and Range bound periods, there is a SEED “a very small microcosm” of a tree/plant, that can start to grow under the right conditions. Often the first instance of growth is sporadic and magical. A lot is achieved within a very short period. The potent energy of seed works like the “butterfly effect”.
That little object may seem small but it has “potential” energy that would soon become larger than itself many times over.
The Seed soon breaks ground and starts to grow. That is where we trade the Setup 1 “breakout”.
When we first started trading this method, the Raw Classic Breakout method, we used to trade nearly all the breakouts. We had a low win rate but the bigger winners took care of the smaller losing trades. But now we have far better methods.
This is AIMS Motto
When it starts to grow it goes through periods of sporadic growth and then some consolidation period.
Waves within Waves within Waves
The markets are fractal geometric. The markets are waves within waves within waves. We can see periods of consolidation on a one-time frame, yet, its within periods of growth within a higher time frame. This is why we see SEEDS within the growth period, that is Trending Markets. So inside a trend, Seed Bars are representing micro consolidations.
We Learned that The HIGHEST probability Breakouts happen during TRENDS.
The Top of The Tree (Peak of Wave)
As the seed breaks ground and grows into a full-blown plant or a tree it eventually and gradually slows down its growth. At a certain point, it stops or ends its journey. It runs out of energy or completes its potential for growth.
It reaches its limits, in a way its done its “thing” and now it wants to reverse the process. It wants to give away its Fruit so that it can spread its Seed and Grow Again and Survive. The Sellers give way to buyers and the buyers give way to sellers. This is The Market.
We called this pattern, this reversal pattern AIMS The Fruit. Because when a plant blossoms and then creates its fruit its purpose has been achieved.
The Ripen FRUIT WILL DROP and hit the ground.
The Fruit, The Seed and The Setup Combined: taught us some valuable lessons. There were good and bad times and the market kept changing while we kept adapting.
Trading these setups for over 5 years or more we arrived at something really beautiful and unique. We learned that THE SETUP and The Fruit could be traded differently. We could trade the Setup 1 and Fruit on our current time frame yet we could integrate simple mechanism that will allow us to take Setup 1 and Fruit signals of lower time frames without even looking at lower time frames.
That is when AIMS The Hunt was created. That is the story of the birth of AIMS The Hunt Strategy. There is a dedicated section of the forum for Hunt Method. Inspired from BBC’s The Hunt Programme.
AIMS The Hunt – A 3 Stages Plan for Everyone
While we arrived at our current Trading Style and Method through years of trial and error and experimentation.
The biggest problem of unsuccessful traders is Lack of Discipline.
People jump from system to system not because the system fails.
(some of them are really good systems). But often its the case of the trader willingly or unwillingly failing to follow the method correctly.
So after years of searching for a solution and working with traders from around the world, we finally came up with a plan that has transformed dozens of traders into Highly Disciplined and Consistently Successful Traders.
It is AIMS The Hunt 3 Stages Plan.
It is a plan that has many benefits. It teaches you how to trade the method and train yourself to become a highly disciplined trader. More on this later.
As more and more new traders signed up for our Original 3 Month Discipline Challenge that began in Jan 2016, we have found that many people now find AIMS methods to be very objective, teachable and profitable as well.
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This weeks lessons and deliberations have lead to something interesting. I was going through my charts and trades and yours and doug’s ideas. I was comparing the KC and the LOBOT. I thought I’ll share my observations with you here. The KC (Keltner Channel) – is good for 1:1 (or
NFP is a great day to trade. It brings lots and lots of volatility to the market. If you are careful with your risk management, you can make some seriously good trades and profit from it handsomely. Today, I’d like to share all the ideas and screenshots I have shared
The Box Gives or Helps us Take the Following Signals The Setup (classic breakout) The Setup 1 (Breakout of Tight Range in the direction of trend/trend resumption) The PC Trend Resumption Signal The B Trap reversals Wide Range Box (sell the highs and buy the lows) The Reversal Fruit Signal